Are Economy Cars Always Cheap To Own?
Are Cheap Cars Really Cheap To Own?
I know that the sticker price is very important to most auto shoppers. This is true if people are looking for a new or used vehicle. However, the actual price of the vehicle should just be one factor to consider. It may not really illustrate the cost of owning a vehicle very well at all!
Consider an obvious example. A lot of people are trying to sell their gas guzzlers for very cheap prices today. You may not pay much for the used vehicle, but with rising gas prices, keeping it fueled can be a larger expense than paying for the car. In addition, if you have not done your homework, you may take home a used car with some mechanical problems. Repair costs can eat into your budget too. All of a sudden, the bargain you picked up at the used car lot is not looking like a very good choice any longer.
Sometimes, paying more for the vehicle, and getting a car that is easy on fuel and does not need major repairs, ends up being a much more frugal choice. Before you purchase a vehicle it is a good idea to have it checked out, and to do some research on fuel economy.
I gave a used car as my first example. However, you can have the same problem if you are shopping for a brand new car from the dealer’s lot. The low end economy car may seem like a great deal. It may even have great gas mileage and a warranty that will save you from a lot of extra costs.
However, you also need to consider the cost of insuring your new car. If you look at a list of the least expensive cars to cover, you will find a lot of minivans, sturdy SUVs, and even some pickups on the list. The lowest priced, economy models may actually cost more to cover. If you have purchased an inexpensive car to control car payments, but then end up with an expensive insurance bill, you may not have really gotten such a good deal after all.
You might have paid $50 a month less for your compact car than you would have for the slightly larger SUV. But you may end up sinking that extra cash into insurance. You could have paid the same total amount of money, and ended up with a more expensive car.
Are Used Cars Always Cheaper?
If you want to buy a reliable used vehicle to save money, be sure it will really save you money in the long run. Some financing companies charge higher interest rates for used car purchases. The difference in interest rates can mean higher car payments in the end. You also have to check into how much money you might save by getting a new car with a good warranty.
Some new cars have advanced safety features which also make then less expensive to insure than used cars. If you want to estimate the cost an auto policy, you cannot always go by the vehicle sales price either!
What Is The Cost Of Car Ownership?
You have to consider the total cost of car ownership. This is not always possible to predict, but you can find out a lot about most makes and models. Look into estimated repair bills, warranty coverage, the cost of an auto policy, and available financing. These are important factors, and they can change the equation much more than the selling price of the car!…